Ann: Greenfields Mining Proposal Approved, page-19

Commsec have a small chart where they automate the indicator analysis.

Back in December:

• Focus Minerals (FML) raises $25.5 million through a non-renounceable entitlement offer
• The offer saw shares offered at an issue price of 25 cents each, with 384 valid applications received, implying 9.4 per cent of shareholders participated in the entitlement offer
• Following completion of the offer, Focus Minerals’ largest shareholder, Shandong Gold, will be allocated over 90 million new shares, taking its stake in the company to 63.5 per cent
• The proceeds will be used to help fund the company’s plans to resume mining at its Coolgardie Gold Project in Western Australia’s Goldfields
• Focus Minerals last traded at 31.5 cents on December 29

Since then the sp has dropped 55%. This tofu dreg vacuumed up some cash and has $37.4 m and 200 koz measured. How much is above water and can wash its face? Nobody who knows is telling. But FML did say...

The initial cost estimate of $28M for refurb of the TMH facility had underestimated the whole of project capital cost.

You sad reader can draw your own conclusions as costs for labour and just about everything else is waaaaay up..

Today from Commsec:
FML shares appear to be in a long-term bearish trend confirmed by multiple indicators.
Long-term, the 200-day moving average is falling and shows that demand for this stock is low.
Nearer-term, the 5-day moving average is beneath both the 20 and 50-day moving averages.

This is a signal that investors see little opportunity in owning this stock at this time.

Here it is. And for what it is worth - since the cash raising - a swan dive into a perfect belly flop.


All my opinion of course and interesting the shortfall estimate of future costs wasn't "known" before the Dec CR but was around the time Wang resigned.in May.